IG Group Reports Strong Revenue Growth in Q3 FY25

IG Group reports a 12% revenue increase in Q3 FY25, driven by strong market conditions and client growth. Freetrade acquisition is set to close in April 2025.

Key Points:

• Strong Revenue Growth: IG Group’s total revenue rose 12% to £268.0M, with trading revenue up 15% and active clients reaching 272,700.
• Expansion & Future Plans: The Freetrade acquisition closes in April, and the share buyback program expands to £200M.

Electronic trading giant IG Group Holdings plc (LON:IGG) has reported a strong financial performance for the third quarter of its fiscal year ending 31 May 2025. The company announced today that its total revenue for the three months ending 28 February 2025 surged to £268.0 million, marking a 12% increase from the same period last year and a 10% rise from the previous quarter.

IG Group’s trading revenue reached £235.3 million, reflecting a 15% year-on-year increase and a 12% rise from the prior quarter. The company attributed this growth to stronger market conditions, which boosted revenue per client.

Active clients also saw an uptick, increasing by 2% year-on-year and 5% from the previous quarter, bringing the total to 272,700. First trades grew across all products, driven by enhanced market conditions, improved product offerings, and a strategic increase in marketing investment, which the company plans to maintain in the coming quarter.

IG Group Reports Strong Revenue Growth in Q3 FY25

The company’s exchange-traded derivatives segment saw substantial gains. Tastytrade’s trading revenue soared by 30% year-on-year and 18% quarter-on-quarter, reaching a record $50.9 million. So, on a reported GBP basis, trading revenue rose by 32% from the previous year and 22% from the prior quarter to £40.8 million.

Meanwhile, stock trading and investment revenue climbed 32% year-on-year and 13% from the prior quarter, reflecting significant enhancements in IG Group’s offerings.

Despite overall revenue growth, net interest income declined by 7% year-on-year and 4% from the prior quarter to £32.7 million. Lower interest rates caused the decline, though client money balances remained stable at £3.8 billion as of 28 February 2025.

IG Group confirmed that Freetrade continues to perform well, aligning with expectations. The company has received key antitrust and regulatory approvals for its acquisition of Freetrade, which is now expected to close in April 2025, ahead of the original timeline.

In January 2025, IG Group extended its share buyback program by £50 million, bringing the total to £200 million for FY25. As of 11 March, the company had repurchased 2.3 million shares for £21.7 million.

Looking ahead, IG Group plans to seek shareholder and regulatory approval to restructure its share premium account and merger reserve, increasing retained earnings.

With strong Q3 results and continued market momentum in Q4, IG Group remains confident in meeting its FY25 total revenue and adjusted profit before tax expectations.

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